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Key Beneficial Ownership (BO) Compliance Highlights

Posted LnCoadmin

A Beneficial Owner (BO) is not merely a nominee or registered shareholder, but the individual who ultimately owns or exercises direct or indirect control over a company. Proper identification of BOs is now a key pillar of corporate compliance.

What is Beneficial Ownership (BO)?

A Beneficial Owner is the natural person who ultimately owns or controls a company, directly or indirectly, beyond the registered shareholder. This includes individuals who:

  • Hold at least 20% of shares or voting rights
  • Have significant influence or control over company decisions or management.
Statutory Requirements

**(Companies Act 2016 & SSM Guidelines)

All Malaysian companies must:

  • Identify and verify beneficial owners
  • Maintain a Register of Beneficial Owners at the registered office
  • Record any changes within 14 days
  • Submit BO information to SSM when required.

**Applies to all companies, regardless of size or industry.

Directors’ and Management Responsibilities

Directors and senior management must:

  • Take reasonable steps to identify and document beneficial owners;
  • Obtain relevant information from shareholders or related parties
  • Properly retain all declarations and updates.

**Non-compliance may result in penalties or legal consequences under the Companies Act.

Practical Compliance Tips

Companies should:

  • Regularly review BO identification procedures;
  • Obtain annual written BO declarations;
  • Update records promptly upon ownership or control changes
  • Safely retain documents for potential SSM inspections.

**Last Updated on 22.01.2026